The start of 2019 has seen a number of new and exciting launches that have been well received by the market. The innovations of last years post payment plans have continued with developers looking for new ways to make their projects stand out from the crowd, such as Emaar’s new live/work community, Executive Residences in Dubai Hills, with prices starting at AED 999,999 and you can get a free three-year business license. Projects that offer real value, such as Cherrywood by Meraas, with three bedroom townhouses offering 2,300 sq. ft. of living space starting at AED 1.4 million.
At the end of January, we saw the announcement of Dubai’s latest supertower, the 550 meter Burj Jumeirah, which will dominate the Jumeirah skyline and will rise at its base from the fingerprint of Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.
Further clarification was also given in February on the new VISA rules which are set to boost the UAE economy by giving greater certainty and stability to residents. Investors of AED 10 million into UAE investments, of which no more than 60% can be property, will be eligible for a 10-year visa. Those investors making an AED 5 million investment into UAE property will become eligible for a 5-year visa. (Investments cannot be secured against any loan).
In terms of the market, January saw a year on year drop in sales according to the DLD of 42% compared to January 2018. This is a reflection of subdued buyer activity in the last quarter of 2018 and less off plan launches this January. However, since the start of this year, at Betterhomes we have been experiencing an uplift in buyer activity, with new buyer registrations up 20% year on year, and new sales reservations up 14%.
Whilst the market remains very price sensitive in the face of further large supply delivery in 2019, we are starting to see an improvement in buyer sentiment as first-time buyers, those looking to trade up and investors are starting to realize the value to be found in today’s market. Today’s buyers, taking a three to five year view on their investments, are making the most of the opportunity of the current supply imbalance has created, but if buyer activity continues to grow, the window of opportunity to take full advantage of this buyers market may not be around for as long as some may think.
The property market in 2019 continues to make headlines.
With a number of new launches being well received, and some new exciting new initiatives by developers, such as Emaar’s Executive Residences, where you can buy your new home and get a 3-year business license, absolutely free.
We’ve had the unveiling of the newest supertower, in Dubai, The Burj Jumeirah and we’ve had further clarification of the 5-year visa rules, spend 5 million dirhams on UAE property, unencumbered by a mortgage and get yourself a 5-year renewable visa.
At Betterhomes, we’ve been busy, we registered 20% more buyers and agreed 14% more sales.
Buyers are starting to wake up to the real value to be found in today’s prices, and if buyer activity continues to grow, I suspect the window of opportunity will not be around for as long as people may think.